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AWWA ACE69114

AWWA ACE69114 Water Rates: New Legal Requirements in California Impact Conservation Pricing

Conference Proceeding by American Water Works Association, 11/01/2008

Corssmit, C.W.

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This powerpoint presentation begins by providing a brief overview of water rate-making, includinglaws that heavily influence defensiblerate-making practices and thenational perspective.California legal developments are presented, includingGovernment Code Section 54999 andProposition 218.Implications for Conservation Pricing are provided, along with thecost of service meaning andcompliance issues. Presentation summary includes the following points:adhere to the legal and technical principles of ratemaking;comply with laws and regulations relevant to the utility'slegal authority;California now has specific rate requirements stemmingfrom Prop 218 and GC 54999;follow recommended guidelines for rate making byAWWA;implement a rate design that recovers costs fromcustomers proportional to the costs to service them; and,avoid subsidization by, and of, any customer classor within a class. Includes figures.

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